Principles or Organization

The relevant principles of organization are given below

  • Division of Function
  • Division of Responsibility
  • Adopt-ability
  • Delegation
  • Line of Authority
  • Co-ordination
  • Specialization
  • Balance

1. Division of Function

The activities of enterprise must be divided into several sections and each section must be entrusted to qualified persons in order to ensure systematic and efficient performance. There should be principle or right man for the right job.


2. Division of Responsibility

The must be definite and suitable division of responsibility. The structure must contain the duties and responsibilities of each person and each section or department so that one may clearly know one's respective functions.
Reading: Industrial Laws

3. Adopt-ability

There must be adaptability and flexibility in organization structure. Its changes must be made in response to changed circumstances in order to meet present situation.

4. Delegation

The principle of delegation is fundamental to organization as well as to each group. So the scope of delegation of authority and responsibility must be understood and clearly defined, preferably in writing.

5. Line of Authority

The must be vertical structure indicating an unbroken line of authority from the highest level to lowest

6. Co-ordination

The organization must be arranged so as to allow an easy co-operation at each level of work.

7. Specialization

Group must be designed so as to attain a greater degree of specialization at each stage.

8. Balance

There must be balance in various sections of organization for the successful operation of the business.

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